Groww is still figuring out how to properly offer US stock trading to Indian investors

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“Our existing app is by far the smoothest than anyone else in the country when it comes to trading, investing, mutual funds and SIPs. The problem with US stocks is not in our control. We need to work with banks and intermediary companies to find the easiest way to do this.

Groww, which opened the doors of US stock trading to internet users in November 2020, has been unable to bring this offering to its wider use of grassroots trading via mobile.

Based in Bangalore, India, the trading platform competes with other high-growth fintech companies, including Zerodha, Upstox and Angle One, and is trying to solve a number of issues, including conversion standardization currencies on the platform.

Groww co-founder and chief operating officer (COO), Harsh Jain, told Business Insier that the problem is not on Groww’s side but rather the dependencies that have been created so far, including the issues funding an account which takes up to 2-4 days.

“The LRS Funding Process [Liberalised Remittance Scheme] and everything is very painful, we are trying to find out if we can solve this problem. If we are able to solve this problem, we are able to evolve this offer. »

In India, the retail investor must contact the bank to convert his Indian currency into dollars. Only then can capital be added to Groww’s stock trading portfolio for foreign stocks.

Another problem is the different conversion rate applied by banks. “If you are using SBI Bank vs. HDFC Bank vs. Kotak Mahindra Bank, to fund an account to buy US currency, the process is not standardized and there are different charging rates,” added the Director of Operations.

The Groww team is frustrated that they cannot fix the issues immediately, as customers have much higher expectations for user experience on the mobile app. The company is trying to make the process more streamlined, setting a standard currency conversion rate and providing a simpler funding process.

“Our existing app is by far the smoothest than anyone else in the country when it comes to trading, investing, mutual funds and SIPs. The problem with US stocks is not in our control. We need to work with banks and intermediaries to find the easiest way to do this”.

Groww is said to have over 2 million users on its platform, with nearly 70% from Tier II and III geographies, and has raised nearly $393 million to date from Tiger Global, Y Combinator, Sequoia Capital India, Ribbit Capital and others. . The company is currently valued at $3 billion as of October 2021.

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